DEVELOPMENT OF DERIVATIVE TRADING ON FINANCIAL MARKET AND AGRIBUSINESS SECTOR IN SERBIA
Transactions with futures and other derivatives began their development in the XIX century on the exchanges in USA and other developed countries, but fnancial market in Serbia is still underdeveloped with exchange materials, volumes and number of participants. Investors on the Belgrade Stock Exchange mostly trade with stocks and government bonds. Also, Agrar Product Novi Sad has organized only spot trading of agricultural products. The paper goal is to present all relevant assumptions and signifcance of derivative trading development in Serbia with discussion about choice to start derivative trading on the already existing exchanges or to establish a new futures exchange that is going to be specialized for derivative trading. As the research method authors use content analysis and comparison of signifcant national and foreign literature with analyses of trading volumes on international and domestic exchanges. Authors recommend that Agrar Product Novi Sad be the frst in expansion of market listing with commodity futures and options. On this way market is going to be deeper, creating effcient mechanisms for investor’s protection from price risks, creating conditions for safer and long term production planning, with increase in market attractivity that could set the Agrar Product Novi Sad as a leader in commodity derivative trading in the South-East Europe.
2. Belgrade Stock Exchange, http://www.belex.rs (December 25, 2017)
3. Birovljev, J., Ercegovac, D., Radaković, M. (2012). The perspectives of commodity futures implementation on the fnancial market of Serbia. Anali Ekonomskog fakulteta u Subotici, Vol. 27, 13-29 [in Serbian: Perspektive uvođenja robnih fjučersa na fnansijsko tržište Srbije].
4. CFA Institute. (2005). Fixed Income, Derivatives, Alternative Investments and Portfolio Management, CFA Program Curriculum – Volume IV, Pearson, Boston.
5. Dugalić, V., Štimac, M. (2007). The basics of stock exchange operations. Second edition, The pillars of culture, Belgrade [in Serbian: Osnove berzanskog poslovanja].
6. Eremić, M. (2004). Development and actual structure of global derivative market. Finance, Ministry of fnance Serbia, Belgrade, Vol. 1-6 [in Serbian: Razvoj i aktuelna struktura globalnog tržišta derivata].
7. International Swaps and Derivatives Association. (2017). ISDA Quarterly, Vol 3, Issue 2, August 2017 (available at: https://www.isda.org/)
8. Mihailović, B., Cvijanović, D., Kuzman, B. (2014). Challenges of Management Consulting in Modern Business of Agricultural Enterprise, (Monograph), Institute of Agricultural Economics, Belgrade.
9. National Bank of Serbia, https://www.nbs.rs/ (January 25, 2018) 10. N1, http://rs.n1info.com/a348655/Biznis/Bitkoin-stigao-na-americku-berzu.html (December 11, 2017).
11. Rudić, V. S. (2016). The role of derivatives in currency risk management on the fnancial market of Serbia. (PhD dissertation), Faculty for banking, insurance and fnance, Belgrade [in Serbian: Uloga derivata u upravljanju valutnim rizicima na fnansijskom tržištu Srbije].
12. Saunders, A., Cornett, M. M. (2006). Financial markets and institutions (Modern view). Second edition, Masmedia, Zagreb [in Serbian: Finansijska tržišta i institucije (Moderno viđenje)].
13. Statista, https://www.statista.com/statistics/272832/largest-internationalfutures-exchanges-by-number-of-contracts-traded/ (December 15, 2017)
14. Sundaram, R. K. (2013). Derivatives in Financial Market Development. International Growth Centre, London School of Economics and Political Science, Working Paper, February 2013, 1-34.
15. World Federation of Exchange. (2017). WFE IOMA 2016 Derivatives. (available at: https://www.world-exchanges.org/)
16. Zakić, V., Kovačević, V., Ivkov, I. and Mirović, V. (2014). Importance of Public Warehouse System for Financing Agribusiness Sector, Economics of Agriculture, Institute of Agricultural Economics, Belgrade, 2014, Vol. 4, 929-944.
17. Zakić, Z., Stojanović, Ž. (2008). Agro economics. CID, Economic faculty in Belgrade [in Serbian: Ekonomika agrara].